ABC Company, Inc. has been in existence for 10 years. They have 50 employees, currently have one location, and they only manufacture one product: widgets. They have managed to stay in business by holding onto a small portion of the widget market, but they are far from the market leader. Over the last 5 years, their market share has stayed more or less stagnant. The president of the company is an older gentleman and mostly works from home. He makes decisions through meetings with his managers over the phone and is rarely seen at the company. Mid-level managers don’t have much contact with each other and basically focus exclusively on their individual departments. The rest of the staff members are very distrustful of management and there has recently been a lot of turnover. Outside of interoffice griping, there is rarely any company wide communication.
Recent economic developments and technological advances in the widget industry have resulted in a greater demand for widgets in emerging markets, as well as in the U.S. In order to stay competitive, ABC Company is considering expanding its operation globally. ABC has come to you, an expert on organizational change, for consulting advice. Evaluate ABC’s current OCC. What advice would you provide in order to better position ABC to successfully implement this change? Be as thorough and specific as possible, covering as many issues as you can.
OCC is Organizational capacity for change.